Markaz ERP

An enterprise resource planning system can best be described as a centralized database that streamlines data collection and analysis from multiple sources. An ERP can serve as a single source of truth by connecting data across business departments, instead of each department operating their own discreet databases. A properly implemented ERP can improve the efficiency of important business processes, often through the automation of manual tasks.

All types of businesses make use of ERP software. The industries which have used them the most are typically within manufacturing, retail, and logistics.

Manufacturers can manage production activities, the supply chain, sales, and accounting within an ERP, analyzing how each aspect of the business impacts each other to maximize profitability and efficiency.

Retailers can use an ERP to manage inventory, customer relationships, discount pricing, and omni-channel sales activities through the integrated ERP database, adjusting each aspect of their business to increase profit margins and reduce costs.

Logistics companies can perform fleet management, improve delivery routes, and arrange appropriate third-party logistics through ERP, simultaneously finding efficiencies that boost productivity and profitability.

But along with these more traditional contexts, there are ERP systems for virtually every industry and niche, from consulting and other professional services to fintech to the fashion industry.

ERP Advantages

An ERP eliminates data silos within enterprises, allowing data from each department to flow to and integrate with the other departments, automatically.

ERP systems can eliminate manual processes, especially in terms of data entry and analysis.

ERP can streamline business processes to make them more efficient and profitable.

An ERP can manage an entire business within a single system, instead of multiple systems.

Cloud-based ERP can remain updated on a consistent basis, ensuring that a business has access to the latest features instead of worrying about the need to upgrade to new versions.

ERP Disadvantages

ERPs can be expensive and complex. If an ERP doesn’t meet the requirements of your business, it can be difficult to derive a ROI from the software.

An ERP can be difficult to implement, not only in terms of installation and configuration, but in terms of training and education for end users.

On-premise ERP systems can be expensive to maintain, especially in scenarios where the solution ages and undergoes customization to work around software issues.

Predicting the future of ERP is tricky due to continual software and hardware innovation, changes that are partially driven by the demands of businesses, large organizations, and end users. However, it’s clear that the forward march of the Internet of Things (IoT) and its industrial context, artificial intelligence (AI), machine learning (ML) and robotic process automation (RPA), and other leading-edge technologies will continue to improve ERP systems’ capabilities. Most ERP vendors are already integrating these technologies to some degree.

Internet of Things (IoT) / Industrial Internet of Things (IIoT)

The internet of things (IoT) and the industrial internet of things (IIoT) include devices like sensors, cameras, and other types of hardware that continuously feeds data from these objects into an ERP database. IoT/IIoT objects reveal data that humans can’t perceive or measure, such as infrared light, miniscule vibrations, or physical data from small spaces that humans can’t access.

Artificial Intelligence (AI) / Machine Learning (ML)

Precisely defining artificial intelligence (AI) and machine learning (ML) can be difficult because of the nebulous nature of these concepts, but there’s no denying the impact that these technologies create within the field of ERP. For the most part, AI and ML mimics human thought patterns and outcomes, and they will continue to become more useful and accurate for companies who want human-free decision-making and analysis.
ERP with high-functioning AI/ML capabilities are likely to outpace solutions with mediocre integration. Companies will increasingly lean on AI and ML to automate and perform tasks previously completed by humans. In some cases, AI/ML will unearth insight that people can’t perceive because of the AI’s ability to handle large volumes of data that are beyond the natural capabilities of humankind.
Companies that successfully blend AI and ML into their business processes will find that the collaboration of human personnel and AI provides easily achievable benefits in the near future.

Robotic Process Automation (RPA)

The technology of RPA allows for robots, which are just mechanical extensions of software applications, to perform routine or repetitive tasks with great efficiency and low to nil error. This frees employees to take on higher-valuer work and increases the rate of production in manufacturing settings. This is an extremely important development with far-reaching applications, and the market for RPA technology and for ERP and other systems that can enable RPA is expected to grow exponentially in the next several years.

Augmented Reality (AR)

Augmented reality (AR) uses digital information to create an interactive overlay that blends the human and digital sensory experience. For example, an engineer using Microsoft HoloLens can use the technology to see what’s happening to hardware located thousands of miles away without leaving the home office.
AR isn’t limited to vision, with the potential for sound, touch, smell and other senses to be augmented through this type of technology. ERP can record and analyze data from AR systems for a wide range of purposes.

Line of Business

The future of ERP includes catering to specific lines-of-business. Some ERP systems will differentiate themselves from competitors by serving as the best solution for specific types of manufacturing, while others may cater to companies within medical verticals.
Technology Evaluation Centers has been at the forefront of business software for decades, including hundreds of successful ERP selection and implementation projects for companies and organizations around the world. Don’t hesitate to contact us for answers to questions you may have about ERP systems for businesses.